Praj Industries Ltd — Q3 FY26

Praj Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=3NOJ8Z5phVA Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the Bra Industries Limited Q3 and 9month FI26 earnings conference call. As a reminder, all participant 0:09 9 seconds lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:17 17 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Miss Purwangi Jin from Wellm 0:26 26 seconds Advisers. Thank you and over to you ma'am. 0:29 29 seconds Good afternoon everyone and a warm welcome to you all. My name is Pirangi Jen from Balorim Advisors. We represent the investor relations of Praj 0:37 37 seconds Industries Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the third 0:45 45 seconds quarter and 9 months ended of the financial year 2026. 0:49 49 seconds Before we begin, I would like to mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. 0:57 57 seconds Such forward-looking statements are subject to risk and uncertaintities which could cause actual results to differ from those anticipated. 1:05 1 minute, 5 seconds Such statements are based on management's belief as well as assumptions made by and information currently available to the management. 1:12 1 minute, 12 seconds Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decision. The purpose of today's 1:20 1 minute, 20 seconds earnings conference call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now let 1:28 1 minute, 28 seconds me introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with 1:36 1 minute, 36 seconds us Mr. Ashish Kaquad, managing director and Mr. Sachin Row, Chief Financial Officer and Director of Resources. 1:45 1 minute, 45 seconds Without any delay, I now request Mr. 1:47 1 minute, 47 seconds Ashish to begin with his opening remarks. Thank you and over to you sir. 1:52 1 minute, 52 seconds Good day everyone. I welcome you to Prague Industries earnings call for three and 9 months performance of FY26. 2:01 2 minutes, 1 second Trust all of you had a opportunity to go through our results for the quarter ended 31st December 2025. The external 2:09 2 minutes, 9 seconds environment remained challenging for PRA in quarter 3 of FI26. We are able to deliver a steady quarter overquarter 2:18 2 minutes, 18 seconds performance due to our focus on operations. However, we believe things are moving in the positive direction now 2:26 2 minutes, 26 seconds uh which will help our business to perform uh better in the times to come. 2:31 2 minutes, 31 seconds I will first cover the external developments and then I will talk about the updates on the Raj businesses um 2:38 2 minutes, 38 seconds subsequently. Recently, India announced trade agreements with the USA, EU and the UK governments. The USA has 2:47 2 minutes, 47 seconds announced the tariff reduction for Indian capital goods from almost 50% to 18% and while uh there will be a 0% 2:56 2 minutes, 56 seconds tariff from u the exports to the EU markets. This will help our business to build a competitive advantage in these 3:04 3 minutes, 4 seconds geographies. Also import of ethanol from USA is not allowed which is a reassuring news for the Indian ethanol ethanol market. 3:14 3 minutes, 14 seconds In the union budget of 2026 our go government has made several announcements. 3:20 3 minutes, 20 seconds These announcements are expected to create opportunities in the sectors that we operate in. To strengthen the CBG 3:28 3 minutes, 28 seconds ecosystem, the government announced phased mandatory blending of CBG into CNG for transportation fuel and also in the pipe natural gas for domestic use. 3:40 3 minutes, 40 seconds The government has also announced central excise duty exemption on the bio gas and the component of that bio gas 3:47 3 minutes, 47 seconds blended into the CNG. These steps will help enhance the commercial viability and attractiveness of CBG. The budget 3:56 3 minutes, 56 seconds also embarked uh on an outlay of 20,000 crores over the next 5 years for the development of carbon capture 4:05 4 minutes, 5 seconds utilization and storage or CCUs an important enabler for industrial decarbonization. 4:12 4 minutes, 12 seconds This opens up opportunities for our CO2 uh capture solutions. Additionally, strategic initiatives such as the 10,000 4:20 4 minutes, 20 seconds cr biioarma shaky program aimed at positioning India as a global pharmaceutical manufacturing hub and the 4:28 4 minutes, 28 seconds schemes to promote semiconductor and electronic components manufacturing India will generate new growth avenues for praises water businesses. 4:38 4 minutes, 38 seconds This week our government's public policy think tank ETIO released a study report. It is titled 4:47 4 minutes, 47 seconds scenarios towards vikasid bharat and net zero. It's an overview. The report highlights 4:55 4 minutes, 55 seconds the expanding role of bofuels in the net zero journey. The report mentions that bofuels ensure our challenging sectors 5:04 5 minutes, 4 seconds particularly the aviation sector, longhaul freight transportation sector and rural mobility sector. They must 5:11 5 minutes, 11 seconds have an access to clean fuel alternatives. The report underscores importance of bofuels in energy 5:19 5 minutes, 19 seconds self-reliance as well. Ethanol, CBG and other advanced biouels along with SAF 5:26 5 minutes, 26 seconds are set to remain an integral part of the uh country's clean mobility landscape over the upcoming years. These 5:36 5 minutes, 36 seconds um suggest a positive outlook for our businesses in the near future. 5:42 5 minutes, 42 seconds Now coming to our project businesses updates. Our 1G domestic business is continuing to experience a slowdown in 5:50 5 minutes, 50 seconds the green field projects due to supply and demand imbalance. However, we see strong traction in our brownfield 5:58 5 minutes, 58 seconds solutions where our customers are prioritizing the operational efficiency improvements and value added co-roduct 6:06 6 minutes, 6 seconds additions such as the distiller corn oil. During the quarter, we secured a good number of DCO orders and have a 6:13 6 minutes, 13 seconds good uh inquiry pipeline as well. On the project execution front, existing project execution cycles are still 6:20 6 minutes, 20 seconds getting extended due to funding and other challenges in the green field project uh scenario. 6:28 6 minutes, 28 seconds Apart from the ethanol, bioisobutanol or bioibba, uh the blending with diesel is another growth area that we are working 6:37 6 minutes, 37 seconds on. I'm happy to share that we have made progress in this technology development of bioa and we believe that our 6:46 6 minutes, 46 seconds technology is ready for commercial commercialization and scala in the 1ji international market countries like 6:53 6 minutes, 53 seconds Indonesia, Panama, Argentina, Guatemala, Costa Rica and Bolivia have made positive announcements around increasing share of biofuels in their energy mix. 7:05 7 minutes, 5 seconds We are engaged in these markets. On CBG front, slowly but steadily we are establishing our technology progress on 7:12 7 minutes, 12 seconds variety of feed stock. We have already proved performance of the CBG plants based on press. Recently we have 7:20 7 minutes, 20 seconds commissioned two plants using maker grass and rice stock as mixed feed stock. These plants have started production and the capacity ramp up of 7:29 7 minutes, 29 seconds these plants is underway. We are confident of demonstrating uh the rated performance on these plants. We will 7:37 7 minutes, 37 seconds continue our journey of working on these and other feed stocks and uh we hope that this sector gathers further 7:45 7 minutes, 45 seconds momentum due to the positive announcements in the union budget. In our services business, there is a healthy order booking for performance 7:53 7 minutes, 53 seconds enhancers as well as the biogenic CO2 capture solutions. The customer installed base of praj which is 8:01 8 minutes, 1 second developed over decades is a source of growth for our services business. 8:10 8 minutes, 10 seconds On SAS front there has been a good appreciation of our integrated ethanol jet demo plant at our R&D center matrix. 8:18 8 minutes, 18 seconds In recently concluded wins India 2026. 8:22 8 minutes, 22 seconds Uh in this conference Mr. Manish Kumar, joint uh director general of DGCA made the announcement of this development. 8:31 8 minutes, 31 seconds While the draft policy of SAS blending is expected in near future, this development is very important from 8:38 8 minutes, 38 seconds technology readiness point of view. PRAJ has the ready technology to convert ethanol to jet. Currently we are 8:46 8 minutes, 46 seconds executing basic engineering orders of ethanol to SOF plants for our customers in the USA and we are planning to 8:54 8 minutes, 54 seconds complete this work by end of this fiscal year. Now moving to our engineering businesses on the PRA GenX front after a 9:02 9 minutes, 2 seconds sharp slowdown in the etc which is the energy transition and climate action segment we mentioned about shifting our 9:10 9 minutes, 10 seconds focus on traditional energy and some of the new segments. In the last few quarters we worked with the new set of 9:17 9 minutes, 17 seconds customers to get our GenX facility audited and certified and also entered into new framework agreements with some 9:25 9 minutes, 25 seconds of the key customers. As a result of this, I'm happy to share that we have received our first breakthrough order 9:32 9 minutes, 32 seconds for the delivery of the CCUS kits from one of the global oil majors. This order 9:38 9 minutes, 38 seconds is an outcome of a framework agreement which has potential for more work to come our way. The union budget 2026 27 9:48 9 minutes, 48 seconds introduced a one-time measure allowing special economic zones or SEZ manufacturing units to sell goods in 9:56 9 minutes, 56 seconds domestic tariff areas as well. This will help in serving the potential market in the segments of data centers and green 10:05 10 minutes, 5 seconds energy initiatives to increase our facility utilization. 10:10 10 minutes, 10 seconds on brewery business. We received a contract for a green field project to set up a large brewery in India. Our ZLD 10:18 10 minutes, 18 seconds business received a significant order from one of the leading metal majors for integrated plant offering effluent treatment, water recycle and ZLD 10:27 10 minutes, 27 seconds solution. Both the orders individually are valued over 100 crores. uh on the large high purity front apart from our 10:36 10 minutes, 36 seconds traditional offerings such as high purity water systems and modular process systems we are focusing on uh the 10:44 10 minutes, 44 seconds precision fermentation area. I'm happy to share that we received a key order for precision fermentation from bio uh 10:52 10 minutes, 52 seconds MBO limited uh in the H. This order is significant since it is our first contract under the national bio3 policy. 11:02 11 minutes, 2 seconds Overall, we believe the external business environment has started showing signs of improvement. We look forward to 11:09 11 minutes, 9 seconds take these opportunities to profitably grow our businesses. With this, I will now hand over to Mr. Sachin Rae for his comments on the financial performance. 11:21 11 minutes, 21 seconds Thank you. 11:23 11 minutes, 23 seconds Thank you Ashish. Good day everyone. Let me take you through the financial highlights for the quarter and 9 months ended 31st of December 2025. The 11:32 11 minutes, 32 seconds consolidated income from operations stood at 8.41 billion in Q3 FY26 more or less same as compared to the September 11:40 11 minutes, 40 seconds quarter of 8.42 billion. PBT before exceptional items stood at rupees 216 million in Q3 FY26 as compared to 296 in Q2 of FY26. 11:52 11 minutes, 52 seconds Following the notification of the new labor courts issued by the government of India on 21st of November 25, the 11:58 11 minutes, 58 seconds company recognized an incremental 344 million impact arising from the increased graduity and leave liabilities 12:06 12 minutes, 6 seconds due to the revised definition of wages and enhanced employee benefits. Profit after tax stood at rupees negative 124 12:14 12 minutes, 14 seconds million in quarter 3 FY26 as compared to 193 million in quarter 2 of FY26. The overall margins are impacted by almost 12:23 12 minutes, 23 seconds 1% this quarter due to the reduction in the export revenue for 9 month FI26. 12:28 12 minutes, 28 seconds Income from operation was 23.23 billion as against 23.7 billion in 9 month of last financial year. PBT before 12:37 12 minutes, 37 seconds exceptional item stood at 608 million in 9 months of FI26 as against 2.1 billion 12:43 12 minutes, 43 seconds in 9 month of FI25. Pat of rupees 122 for 122.4 4 million in 9 month of FI26 12:51 12 minutes, 51 seconds as against 1.8 billion in 9 month of last financial year. Export revenues accounted for 34% of quarter 3 of FI26 12:59 12 minutes, 59 seconds and of the total revenue 71% is from bionergy, 90% from engineering and 11% from PHS business. The order intake 13:08 13 minutes, 8 seconds during the quarter was 9.14 billion with 68% from the domestic market. Of the total order intake, 45% came from bio 13:16 13 minutes, 16 seconds energy, 42% from engineering and balanced 13% from PHS business. The order backlog as of December 25 is at 13:25 13 minutes, 25 seconds 44.91 billion comprising of 66% of domestic orders. Cash in hand on 31st December 25 is 5.9 billion. I now 13:35 13 minutes, 35 seconds conclude my remarks and would like to thank you all for joining us on this call. We would now be happy to discuss any questions, comments or suggestions you may have. 13:45 13 minutes, 45 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If 13:52 13 minutes, 52 seconds you wish to remove yourself from the question queue, you may wish you may press star and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, we'll 14:01 14 minutes, 1 second wait for a moment while the question assembles. 14:14 14 minutes, 14 seconds The first question is from the line of Amit Anwani from PL Capital. Please go ahead. 14:29 14 minutes, 29 seconds Mr. Anwani online has been unmuted. Please go ahead with your question. 14:38 14 minutes, 38 seconds As there is no response from the current participant, the next question is from the line of Sani Vish from Access Securities. Please go ahead. 14:46 14 minutes, 46 seconds Yeah, thanks for taking your question. I have a couple of them. So, first on the margins uh we can see that the gross 14:52 14 minutes, 52 seconds margins are also impacted. So, do you see this as one time and can you expect it to improve? Similarly employee and 15:01 15 minutes, 1 second other expense I think you have managed to reduce uh strategically. So what are expectation on that front as well? 15:10 15 minutes, 10 seconds Sorry your question was not clear but I could understand that uh you are asking for margin and the change in the employee expenses margin the way in 15:18 15 minutes, 18 seconds which if you look at uh from the cost of material point of view it looks like that 8% cost of material has gone gone up but if you look at the other expenses 15:27 15 minutes, 27 seconds have gone down both this compensates each other and when I mentioned that there is a change in the margin by 1% is including the other expenses because our 15:35 15 minutes, 35 seconds project expenses sit into the other expenses so the execution was on a higher side supply component was on the lower side all both put together if you 15:44 15 minutes, 44 seconds look at from the margin point of view then there is a change of 1% in the margin between September quarter and December quarter 15:51 15 minutes, 51 seconds regarding employee benefit expenses uh of course the incremental cost which has come up on the on the past services 15:58 15 minutes, 58 seconds account is sitting in the exceptional item and not in this years and there is some kind of a rationalization which we have seen in the employee headcount and 16:06 16 minutes, 6 seconds employee benefit in this quarter based on the last three quarters performance. 16:11 16 minutes, 11 seconds So that's the change which you have seen majorly on that account. Yeah. 16:19 16 minutes, 19 seconds Uh as you said you have done rationalization. 16:22 16 minutes, 22 seconds So it will only go up when the performance improves. Is that right understanding? That's right. 16:29 16 minutes, 29 seconds Okay. Okay. And second question is on the uh CCUs order. Uh what are our quarterly expectations and when do we 16:37 16 minutes, 37 seconds see this coming on the books and uh the order book that has happened order book growth that has happened during the 16:44 16 minutes, 44 seconds quarter uh mainly appears to be from this order uh and the buyer saw segment actually saw a decline. So does it mean 16:52 16 minutes, 52 seconds that the order intake may taper uh down in Q4? 16:58 16 minutes, 58 seconds Yeah. So Sani maybe I'll take that uh question. uh firstly as you must have noticed that quarter over quarter we 17:04 17 minutes, 4 seconds have grown about 12.4% from Q2 of FI26 to Q3 of FI26. Secondly, if you see the 17:12 17 minutes, 12 seconds mix between the orders, the uh portion of bio energy has gone down and the portion of the phs and the engineering 17:21 17 minutes, 21 seconds orders has gone up. Right? And the reason for that is what we just highlighted in the beginning that in the 17:29 17 minutes, 29 seconds uh bio energy sector mostly on ethanol because of the current imbalance between the demand and supply the green field 17:36 17 minutes, 36 seconds opportunities are of course not uh coming as much as they were in the previous years right and so therefore 17:43 17 minutes, 43 seconds the although uh that particular portion has gone down we have been able to manage the quarter overquarter growth by 17:51 17 minutes, 51 seconds growing our phs and our engineering sector. These uh projects are also in a way beneficial because we are able to 17:59 17 minutes, 59 seconds turn those orders into revenues uh u because we have seen that the orders uh in the bio energy in the last few 18:08 18 minutes, 8 seconds quarters were also stalled mainly because of some of the funding issues that our customers have faced uh in the recent past. Right. So that is why uh this is a better situation. 18:20 18 minutes, 20 seconds Yeah. But I am trying to understand the trajectory for Q4. Do you mean that we'll be able to sustain this higher 18:26 18 minutes, 26 seconds level of uh order intake from non-energy nonbio energy business? 18:33 18 minutes, 33 seconds Yeah, I don't want to make the future statements on the numbers but we certainly see that uh you know the bio 18:41 18 minutes, 41 seconds energy especially on the ethanol side uh we will see some subdued uh you know trajectory for the new green field 18:48 18 minutes, 48 seconds projects. What we are going to now work on is the brownfield projects for the performance enhancement and uh 18:55 18 minutes, 55 seconds efficiency improvement projects on the existing plants uh where we have existing customers is where our focus is going to be. 19:04 19 minutes, 4 seconds And Sunonny if I may add uh the CCOS opportunity which we just mentioned uh technically it is bifurcated into two 19:13 19 minutes, 13 seconds components. One is basically the process equipment which we can provide for the uh recovery solution and another one is the skids or the modularization 19:21 19 minutes, 21 seconds solutions. So we have both the segments in the current order book and this has not happened just from the quarter perspective. We are working on this 19:29 19 minutes, 29 seconds development or we are working on this segment since last at least a year and in the genx also we started working when we decided that ET is not contributing 19:38 19 minutes, 38 seconds to our order book and we need to do something else we started developing the uh skill sets for these new technologies or new avenues which are opening up. So 19:47 19 minutes, 47 seconds it is not only from the quarter point of view, it is actually from the overall growth or the uh new businesses which we 19:56 19 minutes, 56 seconds are uh looking for. So this is forming a part of that book in any case. 20:01 20 minutes, 1 second Understood. That's great. And any uh expectations on the run rate revenue or when it can start from the CCS order? 20:10 20 minutes, 10 seconds See on on the uh I would I would rather give an uh the some kind of a uh view on 20:18 20 minutes, 18 seconds the overall genx story. We we we were always talking about that GX will have uh the order coming up from the larger 20:26 20 minutes, 26 seconds uh kind of a number. Uh the change has just happened. uh this is the first order and that is also as Ashish 20:33 20 minutes, 33 seconds mentioned earlier it is under the larger framework agreement with our specific customer who has approved our facility and given us a clearance for this big 20:42 20 minutes, 42 seconds order. Uh we believe that this is just the beginning. Uh I will not be able to tell you exactly what is going to happen in next quarter but we'll have to wait 20:49 20 minutes, 49 seconds for one more quarter to see how the other customers are going to start placing order on GenX but this is just the beginning. 20:58 20 minutes, 58 seconds Okay, great. Uh thank you for the detailed answer. Thank you. Thank you. 21:05 21 minutes, 5 seconds The next question is from the line of Sesh Ganani from Centrum Broking. Please go ahead. 21:10 21 minutes, 10 seconds Uh good afternoon everyone and thanks for the opportunity. So I have three questions. The first one uh Asha you on the opening remarks told about uh we are 21:19 21 minutes, 19 seconds ready for ethanol blending with diesel on the commercial scale. So I just wanted to know what things have changed from last quarter uh and the road map 21:28 21 minutes, 28 seconds over there. My second question is uh something what such kind of highlighted in terms of order and flow. We have uh 21:36 21 minutes, 36 seconds kind of uh showcased many orders on the PPD. So can you walk us through any order details like timelines or margins 21:43 21 minutes, 43 seconds how would they kind of aid to our profitability in FI2728? 21:47 21 minutes, 47 seconds And uh third on the Mangalore facility uh we had earlier indicated that FI27 would be the year where we would break 21:55 21 minutes, 55 seconds even uh so any update on the same that would be my three order uh three questions. 22:02 22 minutes, 2 seconds Okay. So I'll take the first one uh and then I'll hand it over to uh Sachin. So the first one uh that you mentioned was 22:09 22 minutes, 9 seconds ethanol blending in diesel. Uh that is not what I said in my opening remarks. 22:15 22 minutes, 15 seconds What I said was we are working on bioibba or bioisobbutinol which is different than ethanol right 22:23 22 minutes, 23 seconds and uh there are scientific reasons why this is a molecule that is more aminable for blending in diesel uh we can 22:31 22 minutes, 31 seconds separately get into the details of that and what we believe is that the transport sector in India majorly uses diesel and when the government's agenda 22:40 22 minutes, 40 seconds to use bofuels into hard to a bit sectors like transport transportation sector uh this can be an opportunity and 22:48 22 minutes, 48 seconds should it open up through policy framework etc pra is ready with its technology to uh make it commercially 22:56 22 minutes, 56 seconds and scale it up I think that's just a quick clarification I wanted to make as far as uh the bio IBH is concerned is 23:05 23 minutes, 5 seconds that yeah yeah yeah that that's fine but I yeah you're right but I just was wondering anything has changed from last quarter because uh earlier we always had 23:14 23 minutes, 14 seconds that view that it is not commercially uh still kind of uh viable. So has anything changed since last quarter? 23:22 23 minutes, 22 seconds Yeah, I think this is a continuous improvement process. You know, we keep working on the technology so that the efficiencies improve, the yields improve 23:29 23 minutes, 29 seconds and the technology becomes better and better and as we get an opportunity to make uh you know the commercial uh 23:36 23 minutes, 36 seconds plants um we will be able to further improve on it right. uh but the direction of using a bofuel into diesel 23:45 23 minutes, 45 seconds is what continues and any nudge from the government side with respect to this because earlier also the commentary has been that there 23:52 23 minutes, 52 seconds are couple of issues uh regarding the same yeah I think government is actively thinking about this uh it's a it's an 24:00 24 minutes alternative that you know is something being discussed uh they have not yet announced anything officially but 24:07 24 minutes, 7 seconds certainly uh you know this is being Thanks sir. 24:14 24 minutes, 14 seconds Thanks sir. That is useful. My other two questions. 24:17 24 minutes, 17 seconds Uh can you please uh give this second question order booking related what you wanted to understand? Shish. So uh sir 24:24 24 minutes, 24 seconds if you can give you know walk us through any any final details like in terms of timelines when this order execution will 24:31 24 minutes, 31 seconds start uh uh and also uh in terms of margin profile how would that kind of aid FI2728 going ahead basically and my 24:40 24 minutes, 40 seconds second uh the third question was with respect to Mangalore facility we had earlier indicated that FI27 would be the break even year uh so any update on that 24:50 24 minutes, 50 seconds okay so Ashish will give you some kind of a highlight on the order booking and the timelines for that. 24:56 24 minutes, 56 seconds Yeah. So I think uh we talked about three orders mainly in the opening remarks. Uh chalesh uh I talked about 25:05 25 minutes, 5 seconds the two orders in the engineering uh businesses. Uh one which is a green field brewery and the other one which is 25:13 25 minutes, 13 seconds a zero liquid discharge project from a uh large metal manufacturing company. uh both of them individually upwards of 100 25:22 25 minutes, 22 seconds uh crores. Now these project executions have already started as we speak and typically our uh or execution uh period 25:31 25 minutes, 31 seconds is in the range of about 12 to 14 months. So we do see the conversion of these orders in FY27. 25:39 25 minutes, 39 seconds Uh the third one which I had talked to you about was this CCUs kids order from a oil major which is a global order 25:46 25 minutes, 46 seconds coming into our Gen X facility right so it links to your third question as well uh we expect that about 50 to 60% of 25:55 25 minutes, 55 seconds this uh order uh will get converted into revenues in FI27 26:02 26 minutes, 2 seconds and just to add regarding the break even uh what we mentioned earlier uh I think we are on the course we are we still seeing that we will be able to do that in the FY27. 26:13 26 minutes, 13 seconds Uh as I said this is just the beginning of first order. Uh we are handling a couple of more high value orders in the different segments for the Mangalore 26:22 26 minutes, 22 seconds facility and quarter 4 is yet to get over. So depending on how we will close this quarter 4, we will have far more 26:28 26 minutes, 28 seconds clarity about how we will be seeing FI27 from Mangalore facility point of view. 26:35 26 minutes, 35 seconds Thanks a lot sir. That's very useful and best of luck sir. Thank you. Thank you Shalish. 26:42 26 minutes, 42 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The 26:50 26 minutes, 50 seconds next question is from the line of Aditya Monia from KC Securities. Please go ahead. 26:56 26 minutes, 56 seconds Um thank you for the opportunity. Um a few questions from my side. um uh FIFA uh as in some more clarity on why the 27:06 27 minutes, 6 seconds better margins are uh taking a leg down would be useful. So now our sense is that your revenue and backlog are fairly well reflecting similar numbers of 27:14 27 minutes, 14 seconds export mix. So unsure why the export mix change is being attributed to an decline 27:22 27 minutes, 22 seconds in margins. That's my first question and somewhere linked to that thing uh as where do you see given where your 27:29 27 minutes, 29 seconds backlog is margins should be stabilizing in FI27 because you would have a fair sense of the backlog and and thus the margins for FI27. 27:39 27 minutes, 39 seconds Okay. So uh Amit regarding the margin we talking about what happened in quarter of September and what happened in 27:46 27 minutes, 46 seconds quarter of December. quarter September was having little higher export realization as compared to quarter of 27:53 27 minutes, 53 seconds December and back to the composition within these two quarters. We had delivered a little bit more on the Africa market side in this quarter as 28:02 28 minutes, 2 seconds compared to the last quarter. Africa margins as I earlier also mentioned that we are we are actually executing a very 28:09 28 minutes, 9 seconds big order and that order is not only for supply of equipment but it is also for the construction activity. Because of that the margins are not generally what 28:17 28 minutes, 17 seconds we get in the international market because generally we only do a supply portion in the international market. So as I said the larger component within 28:26 28 minutes, 26 seconds this quarters export is sitting from the African market and that's the reason there is a drop in the margin as compared to the September September 28:34 28 minutes, 34 seconds margin. What was your second question as just link up to this? So let's say if it's 5.6% 6% that has happened for you 28:44 28 minutes, 44 seconds on the console operations as in barring any changes in Gen X should this be a steady run rate um incrementally because as in 2K appear to 28:52 28 minutes, 52 seconds be higher on the counts that you said so should one assume this kind of number yeah 29:00 29 minutes yeah so we will see quarter on quarter improvement definitely uh am I going forward but it will take maybe one more 29:08 29 minutes, 8 seconds quarter we'll have to wait for quarter four to see how this development is going to span out and importantly which component of orders are getting executed 29:16 29 minutes, 16 seconds and to what extent we are in a position to absorb the uh Mangalore facilities fixed cost. So that is what is going to define maybe we'll have to wait for at 29:25 29 minutes, 25 seconds least a quarter to say that now on a steadily basis we will improve our margin on a quarter on a quarter basis. 29:34 29 minutes, 34 seconds Okay. Alongside this the cash position of the company has been weakening as in if I just see your comments year on year 29:41 29 minutes, 41 seconds as in over the last few years your cash position only has gone down. Um I think on a y by this 6.4 has become 5.9 billion as you said in your remarks. 29:52 29 minutes, 52 seconds Why would that be happening and how to think through it? 29:56 29 minutes, 56 seconds Okay so if you look at our cash positions from quarter 1, quarter 2, quarter 3 has constantly gone up. 30:03 30 minutes, 3 seconds Quarter one we had mentioned that there was some kind of a slowness had affected on the recovery of receivables and the 30:10 30 minutes, 10 seconds piling up of inventory but because the execution focus which we brought in in quarter 2 and quarter 3 the receivables 30:18 30 minutes, 18 seconds has also started improving and inventory also started getting diluted. Second one, the larger orders which we are 30:26 30 minutes, 26 seconds executing from Kandla that that was also mentioned in the earlier quarter that these are very large orders and those orders will get dispatched over a period 30:34 30 minutes, 34 seconds of time starting from quarter 3 and we'll get over in quarter 4. So that liquidation of inventory has also started but if you look at quarter 1, 30:42 30 minutes, 42 seconds quarter two and quarter three the cash position has improved. 30:47 30 minutes, 47 seconds Yeah, that I do understand just y still down. So a little bit concerning from that perspective. Uh maybe just a five minute orders. 30:56 30 minutes, 56 seconds Sorry. Ka orders of were of a very high value and uh the delivery cycle was almost 18 months for them. Even though 31:04 31 minutes, 4 seconds we were having some milestone payments happening in between but the larger component was linked to the dispatches of the la last set of equipment which 31:12 31 minutes, 12 seconds has just started happening now and that is how the cash flow position has got improved over the last three quarters. 31:20 31 minutes, 20 seconds Maybe just a final question. Thanks for the color over here. Um you talked about FAF the design part for the US major um 31:29 31 minutes, 29 seconds happening by March end by when will there be clarity as to who's going to get the plant order um in this u u u in 31:40 31 minutes, 40 seconds this regardia and if any comments that you would want to make on CBG and why the scaleup is taking time. Thank you. I 31:48 31 minutes, 48 seconds think those are too many questions but I'll take those very quickly. So on the SAS I mentioned that we are doing an engineering detailed engineering uh 31:57 31 minutes, 57 seconds services order which is for one of our US customers. Uh this is going to be over by end of March or probably middle 32:06 32 minutes, 6 seconds of April at most. After that the customer looking at the detailed engineering estimations etc will take a 32:14 32 minutes, 14 seconds decision on their investments and then we will know more about it. So you'll have to wait for uh the quarter uh one 32:22 32 minutes, 22 seconds of next year because that's when we we expect the customer to take any kind of decision based on that. Currently our 32:29 32 minutes, 29 seconds involvement is only for the uh detailed engineering and on CBG we are making steady progress. If you have uh you know 32:36 32 minutes, 36 seconds had a chance to listen to my opening remarks uh we said that we are going slow and steady because you know we are 32:43 32 minutes, 43 seconds a technology company we are making sure that the technology works. The press mud part is working really well. We have 32:51 32 minutes, 51 seconds started two more plants which are mixed feed uh which is rice straw and nap grass and we will continue to give you the updates as we go along. Right. So uh 33:00 33 minutes we are again encouraged by the union budget and the kind of uh focus that uh the government is trying to bring in this sector. 33:10 33 minutes, 10 seconds Thank you. Those are my questions. Thank you so much sir. Thank you. 33:14 33 minutes, 14 seconds Thank you. The next question is from the line of Amit Anwani from PL Capital. Please go ahead. 33:21 33 minutes, 21 seconds Hi sir. Thanks. Hope I'm audible this time. There was a technical issue with the line earlier. 33:26 33 minutes, 26 seconds Yes. Yeah. Yeah. We can hear you clearly now. 33:28 33 minutes, 28 seconds Yeah. [clears throat] So first question on uh GenX and uh congratulations for the order first of all uh after the 33:35 33 minutes, 35 seconds challenges which we had faced uh in GenX u uh one I would like to understand uh 33:43 33 minutes, 43 seconds uh what is the status with respect to the inspections now. So earlier we had five to six clients then there was a challenge and this CCS order which you 33:51 33 minutes, 51 seconds got. So just wanted to understand uh in terms of uh clients uh inspections or p uh pipeline of clients what's the number 34:00 34 minutes there and uh broadly uh in terms of number of orders if you could at least highlight what one should expect in 34:09 34 minutes, 9 seconds terms of inflow from Gen X next year for F27 and third portion you highlighted data centers would like to understand what is 34:18 34 minutes, 18 seconds the addressible market there what exactly would to supply is it international, domestic, US uh that would be uh helpful. Yeah. 34:30 34 minutes, 30 seconds Okay. Okay. So, uh the total approvals and audit number has reached to 12 34:37 34 minutes, 37 seconds and the framework agreement which we were mentioning earlier are almost now four. Out of that one has already resulted into an order in this quarter 34:46 34 minutes, 46 seconds and we believe that this journey should continue now and as it has just begun. 34:51 34 minutes, 51 seconds The idea for next year is naturally from the planning point of view. I'm not talking about the numbers which you can look at from the guidance point of view. 35:02 35 minutes, 2 seconds But our target is at least we should be hitting a number on order booking of not less than 500 crores. 35:08 35 minutes, 8 seconds That's the target which we have kept for ourselves from the order booking side. 35:12 35 minutes, 12 seconds And uh the idea is also to capture as much of uh uh possibilities or the opportunities which are there in the 35:20 35 minutes, 20 seconds first uh two quarters of the next year maximum. So that's the picture which we are right now having from Mangalore facility point of view. 35:32 35 minutes, 32 seconds Right. So on data center column yeah I can take that up. So on the data centers uh there um it's uh you must 35:41 35 minutes, 41 seconds have seen all the buzz around data centers and its uh growth due to the artificial intelligence and some of the 35:48 35 minutes, 48 seconds other applications uh developing very fast. Uh we are specifically focusing on uh currently the international market 35:57 35 minutes, 57 seconds but soon even India can uh be the place for us to look at it. Right. So we are assessing that market space uh depending 36:06 36 minutes, 6 seconds on how much of the scope we can take up the uh total available market can vary. 36:14 36 minutes, 14 seconds Uh our current focus is on the cooling systems that we have and uh this is 36:20 36 minutes, 20 seconds basically uh to provide uh the cooling system related uh infrastructure uh the 36:27 36 minutes, 27 seconds piping and uh the frames uh that go into the data center. Um it's a precision fabrication type of work which we are 36:36 36 minutes, 36 seconds quite capable of doing in our Gen X state-of-the-art manufacturing facility. 36:42 36 minutes, 42 seconds But we are also exploring other areas beyond this uh in that go into the data center where pra can develop expertise. 36:51 36 minutes, 51 seconds Right? So early days we are developing this but since it's a sector that is growing fast we are keeping ourselves engaged there. 37:01 37 minutes, 1 second Right. [clears throat] So so second question on the bio energy international. uh earlier you highlighted that Brazil was one of the 37:09 37 minutes, 9 seconds market where you won orders and uh you also highlighted the positive policy development with the other markets. 37:16 37 minutes, 16 seconds Wanted to understand uh in the first 9 months how many order we won in international and second uh is there an 37:25 37 minutes, 25 seconds immediate international market probably in next 6 to 12 months uh we might be targeting uh more order uh there. 37:35 37 minutes, 35 seconds Yeah. So you must have seen in our uh investment uh investors presentation uh that when it uh is a order booking for 37:44 37 minutes, 44 seconds the current quarter it's about uh domestic of 68 and 32% of international you know that's a split that we have 37:53 37 minutes, 53 seconds right so in terms of new markets anything where which is kind of converting and uh probably convert into orders for you in next 12 months the 38:02 38 minutes, 2 seconds markets you have highlighted Yeah, some of these orders will start converting into revenues. Um, I don't 38:10 38 minutes, 10 seconds have the exact numbers right now, but yes, these will start converting into revenues. 38:16 38 minutes, 16 seconds But am I the uh the markets which we just mentioned, some of them are from the Latin American side and we are already getting some orders from that 38:24 38 minutes, 24 seconds market uh because of the increased uh lending mandates which are getting announced. So that one is happening. 38:30 38 minutes, 30 seconds There is no I would not like to say that there is any virgin virgin market which is not being served by PR which is anyway getting served and we are only 38:39 38 minutes, 39 seconds increasing our presence over there right [clears throat] so lastly on on the CG sorry to interrupt Mr. May we request 38:48 38 minutes, 48 seconds you return to the question key queue for a follow-up question. Sure. Thanks. 38:52 38 minutes, 52 seconds Thank you. The next question is from the line of Separal from asks Sabberwal.com. Please go ahead. 39:01 39 minutes, 1 second Uh I just wanted to know more about the 2030 target of 10,000 flows of revenue 39:09 39 minutes, 9 seconds which was announced by the chairman because when that was announced uh it was already known that there's going to 39:18 39 minutes, 18 seconds be a tapering off of the 1g ethanol demand in India and so in that context 39:25 39 minutes, 25 seconds that uh target was announced and since Then the revenue growth has actually flattened and profitability is also come 39:33 39 minutes, 33 seconds under pressure. So how unfortunately we are not able to hear you. Can you read little louder? And your line seems to be having a disturbance. 39:43 39 minutes, 43 seconds One second. Hello. Can you hear me now? Yeah. 39:52 39 minutes, 52 seconds Yeah. I just wanted to talk know more about the 2030 target set by Mr. Chadri because uh when the target was set it 39:59 39 minutes, 59 seconds was already known that there's going to be a slowdown in the 1G side and uh uh 40:06 40 minutes, 6 seconds even after that that target was announced. So how do you see your company moving towards that? 40:15 40 minutes, 15 seconds Okay maybe I can take that and Sachin can add to me. So first of all Sep G uh uh thanks for the question. uh if you 40:23 40 minutes, 23 seconds see our fundamentals are still the same and uh there are strong uh vectors uh that will enable us to go towards our uh 40:32 40 minutes, 32 seconds ambition to be a 10,000 cr company right now. Whether we will reach there by 2030 or 2031 will depend on a few mandates uh that were assumed at that point in time. 40:45 40 minutes, 45 seconds For example, the 1G uh you know projections that you talked about uh we probably expected that beyond the 40:54 40 minutes, 54 seconds successful EBP20 program which is 20% blending in patrol um you know there is a capacity to go even higher than that 41:02 41 minutes, 2 seconds uh there is flexif fuel engines that can come in or even the vehicles can take up to 100% of ethanol. Uh so there are 41:11 41 minutes, 11 seconds other pathways for ethanol that are being worked upon. They will have different inflection points uh in the 41:18 41 minutes, 18 seconds future and we believe that uh you know that uh ambition that we as a company have to reach 10,000 uh kores and the 41:27 41 minutes, 27 seconds vision that is set by uh our chairman uh we are working on that still. 41:38 41 minutes, 38 seconds Is that all because you just talked of 1 as a opportunity to get there. So yeah, I don't think you're going to get there on itself. 41:47 41 minutes, 47 seconds Yeah, correct. So I'll give you little bit more color. Uh I would say uh uh as 41:54 41 minutes, 54 seconds the um you know bioa uh sort of blending uh gets accepted by both the government 42:03 42 minutes, 3 seconds and uh the industry that opens up a new market in the biouares. SAS is another area where Raj is one of the first 42:12 42 minutes, 12 seconds companies ready with the technology. Uh we also talked about favorability um that is seen in the union budget for 42:21 42 minutes, 21 seconds compressed bio gas which is a sector that we are a strong player in. Uh I'm also you know encouraged by the tariffs 42:29 42 minutes, 29 seconds uh you know and the uh lowering of tariffs in uh the key markets for international business that praas. So 42:38 42 minutes, 38 seconds all of these put together are very encouraging for us right and what happens over the next uh four years is 42:46 42 minutes, 46 seconds going to be uh something which will be interesting. Uh what I would like you to take take away from this discussion is 42:53 42 minutes, 53 seconds that pra is ready with the technology as a technology company and we are ready to engage in these new markets and new 43:02 43 minutes, 2 seconds opportunities. there are dependencies on policies and some of these triggers that I talked to you about uh and I'm sure 43:09 43 minutes, 9 seconds that some of them if not all of them some of them will certify and we will be able to march towards the uh target that was set uh for 2030. 43:20 43 minutes, 20 seconds Pardon me for the skepticism of investors but you know over the years there have been a se we see a series of 43:28 43 minutes, 28 seconds press releases from PR relating to their technology and how the technology is firstass or unique etc but I'll just 43:37 43 minutes, 37 seconds give you a couple of examples like um Rampur Chimi announced a bioplastic venture of 2,000 crores but then the uh 43:45 43 minutes, 45 seconds company which is doing that technology partners are different you said that you are uh your technology 43:52 43 minutes, 52 seconds on SAF is one of the best but recently I think this two alt energy announced SAF 43:59 43 minutes, 59 seconds plant but where the technology is coming from some other company it's a big investment so so all that is the thing 44:06 44 minutes, 6 seconds which concerns us because uh we see these announcements of PR being at the forefront of technology but then we 44:15 44 minutes, 15 seconds don't see the orders getting translated No fair point uh sep um so we cannot 44:23 44 minutes, 23 seconds comment on the decisions taken by some of the other uh industry players uh for Balur Chini when that project got 44:32 44 minutes, 32 seconds announced maybe uh we had not completed our technology offering right so uh but now we have and we can certainly be 44:41 44 minutes, 41 seconds ready for any new opportunity that comes up in the market and the same thing is true for uh the SA F technology that we 44:50 44 minutes, 50 seconds have. So your concern is well noted. Uh I understand uh the skepticism that you 44:57 44 minutes, 57 seconds mentioned. Uh but yeah, I think uh in a market there are players and there is competition and there are opportunities 45:05 45 minutes, 5 seconds that will come up and what I can only assure you is that we are ready with our technology and uh uh our intent to engage in these markets. 45:17 45 minutes, 17 seconds All right. Thank you. Thank you Sundi. 45:21 45 minutes, 21 seconds Thank you. Participants who wish to ask questions may press char one at this time. The next question is from the line of Amit Ga from Edji Hava. Please go ahead. 45:31 45 minutes, 31 seconds Yeah, thank you for the opportunity. So my question is with respect to the margins like can we return to the 24 levels of 10 11% and what structural 45:39 45 minutes, 39 seconds steps are being taken to restore the margin? 45:43 45 minutes, 43 seconds Sorry your unfortunately question was not clear because his voice is not clear. Can you be a little louder and uh maybe use your handset? 45:52 45 minutes, 52 seconds Maris am I? Yes. Yes. Am I audible? Is it clear now? 45:57 45 minutes, 57 seconds You're audible but your voice is getting in between. 46:02 46 minutes, 2 seconds Okay. So question is coming through the margins sir like do you think like we can return to 24 level margins of 10 11% and what structural steps are being 46:11 46 minutes, 11 seconds taken to restore margins? Yeah. So two three things which I mentioned earlier also that uh majorly the margins are 46:18 46 minutes, 18 seconds getting impacted because of uh the fixed cost absorption which is supposedly to happen in our new facility and as I 46:26 46 minutes, 26 seconds mentioned earlier that auto booking has already started happening in that facility and we believe that we will be in a position to uh arrest whatever is 46:34 46 minutes, 34 seconds the fixed cost absorption which is not happening going forward we will see that happening which will which will help us in improving the margin. uh that's one 46:42 46 minutes, 42 seconds element. Secondly, naturally the mix of sales which we are talking about uh the composition of uh the segments or the 46:50 46 minutes, 50 seconds sectors which Ashish has just given a color to that is what is going to help us in uh going back to the normal uh margin scenario. 47:01 47 minutes, 1 second So the volume, the fixed cost absorption, the composition of sales and the geography these are the three or four segments at a higher level I can 47:10 47 minutes, 10 seconds tell you is what is going to help us in improving our margin. 47:14 47 minutes, 14 seconds The last question sir are you planning additional manufacturing facility beyond the current five which we have. 47:20 47 minutes, 20 seconds Uh frankly no because from the uh engineering business point of view actually we had invested for future not 47:27 47 minutes, 27 seconds only for the current requirement of course the current requirement is also got little bit postponed and the additional investment which we had taken 47:35 47 minutes, 35 seconds into account considering the future growth is already been done. So we are not looking for building up any facility 47:42 47 minutes, 42 seconds per se but to meet to these new requirement or new uh segments which we just referred to. If there is any requirement on the plant and machinery 47:51 47 minutes, 51 seconds side that's that is what we'll get added into but otherwise from the factory or land and all that I don't think that we will be investing anymore. 48:01 48 minutes, 1 second Thank you noist. Thank you. 48:06 48 minutes, 6 seconds Thank you. The next question is from the line of Taval Sha from Infinite. Please go ahead. 48:12 48 minutes, 12 seconds Yeah, good afternoon. Thanks my thanks for begging my question. 48:17 48 minutes, 17 seconds Continuing on the skepticism part, uh we've done lot of announcement like uh having a JV with Indian Oil Corporation 48:25 48 minutes, 25 seconds in 2022 and then very recently we announced a JV with DPCL but then after 3 4 years there 48:33 48 minutes, 33 seconds is no followup no any announcement that what we've done with the IOC. 48:42 48 minutes, 42 seconds Okay. So um Devil what is your question? 48:46 48 minutes, 46 seconds My question is we do make JVS with IOC then what is the progress on that? 48:52 48 minutes, 52 seconds We were supposed to start any initiative in that uh JV but uh since it's been around 3 four years there is no 48:59 48 minutes, 59 seconds progress. Yeah, let me answer this question on both the JVS. Uh, I JV if you recall was mean for starting with 49:08 49 minutes, 8 seconds the SAS project and it was mean for overall bofail scenario. So as uh the 49:15 49 minutes, 15 seconds decision has not yet been reached to what what is to be taken first in from the uh which bio bofail project has to 49:22 49 minutes, 22 seconds be taken first the decision is not yet reached to finality on the ISCL JV and that's the reason why you know not we have not made any specific announcement 49:30 49 minutes, 30 seconds on the ISLJV if you look at BPCL JV BPCL JV is mean for mainly to start with on the CBG 49:38 49 minutes, 38 seconds sites and idea was to start this JV only when we are finalizing at least list five projects to be taken up under this 49:45 49 minutes, 45 seconds JV. So right now we are actually shortlisting the uh projects for this uh JV where the developer is also 49:53 49 minutes, 53 seconds supposedly to be part of it. So the discussions and negotiations are going once that gets finalized we will definitely announce the further steps 50:02 50 minutes, 2 seconds under this JV for BPCL but that that's that is what I mean it is a work which is going on right now to give some kind of a finality to this JV. 50:12 50 minutes, 12 seconds Yeah, we do hope that that it reaches some conclusion and doesn't lay languishing like the IOC JV because we announce and you know and such 50:21 50 minutes, 21 seconds announcements the chairman and the IOC chairman comes for a picture and then there is no progress. It's very amusing when such uh dignitaries are involved and then there is no progress. 50:33 50 minutes, 33 seconds Yeah, I we can understand your concern but you'll have to also understand that there are multiple other things also 50:40 50 minutes, 40 seconds which plays a role into it and it is not a simple order which someone has to place on it. It's a different business model also which we have to get it 50:48 50 minutes, 48 seconds evaluated properly and who's going to play what role and all. As I said those detailing is right now going on. 50:54 50 minutes, 54 seconds Naturally I guess four years is good enough. 50:57 50 minutes, 57 seconds I guess four years is a good enough time to finalize all those things. And one more thing on the CBG. Yeah. 51:05 51 minutes, 5 seconds Go ahead. Go ahead. Go ahead. 51:07 51 minutes, 7 seconds One more thing on the CBG part. Reliance had announced around 65,000 crores investment in Andhra Pradesh. So are we seeing any traction on that side whether 51:16 51 minutes, 16 seconds we are working with Reliance because we previously did one project with Reliance for CBG. So Reliance has announced such a big apex in Andhra Pradesh. Is there any movement on that side? 51:27 51 minutes, 27 seconds So Dav I will take that question. They have announced a program which is in public domain. It's called Pakasam and 51:34 51 minutes, 34 seconds uh the amount you just now mentioned uh their uh so their intent is very clear that they have not yet uh you know 51:41 51 minutes, 41 seconds engaged um any vendors for going ahead with that program. Uh we are of course 51:47 51 minutes, 47 seconds one of their um technology uh suppliers and uh we are doing several of their plants as well. as and when that 51:56 51 minutes, 56 seconds opportunity opens up. I'm sure we will also have a part to play in that. 52:02 52 minutes, 2 seconds All right. Have a good future. Good luck. Thank you. 52:08 52 minutes, 8 seconds Thank you. The next question is from the line of Adita Moonia from Cortex Securities. Please go ahead. 52:15 52 minutes, 15 seconds Uh yeah. Yeah. Thanks for for the opportunity. uh just wanted to kind of kind of uh gauge better from you as in 52:23 52 minutes, 23 seconds from the perspective of the staff opportunity that um got signed between true and anywhere could could you give us a sense as to were we at par in terms 52:32 52 minutes, 32 seconds of giving the offering or are there parts of it that we still don't have inside and thus uh we couldn't get inside this opportunity. 52:44 52 minutes, 44 seconds Well, Adita, I I don't know what exactly is that arrangement between uh these two organizations that you just uh alluded 52:53 52 minutes, 53 seconds to. Um we certainly uh were not involved in that discussion uh with True Alt. So I will not have any information on that. 53:03 53 minutes, 3 seconds Uh True Alt um you know is one of our customers. You know we have been working with them on other technologies as well 53:12 53 minutes, 12 seconds and if they have done this decision in the wisdom that they have then it'll be very difficult for us to comment on that. 53:23 53 minutes, 23 seconds I'm just trying to get a sense as in what the nature of the contract was. Is was that something that Raj could have also um kind of delivered on or I'm just 53:32 53 minutes, 32 seconds trying to get that aspect not trying to get an aspect of anything else. 53:36 53 minutes, 36 seconds Well yes absolutely. Uh if PRJ were to be given an opportunity certainly yes but I think first of all is there a 53:44 53 minutes, 44 seconds contract is the question that we may have to find out or is it just an announcement. Uh so I therefore I'm 53:52 53 minutes, 52 seconds saying that it is not for me to comment on these uh you know especially for the two organizations that I'm not a part 53:58 53 minutes, 58 seconds of. I'm a part of Praj and uh if your question is had that opportunity been given to PR uh yes certainly we would 54:06 54 minutes, 6 seconds have been able to do uh this project and Adita if I may add uh we will see many opportunities coming up in the market 54:14 54 minutes, 14 seconds because if you looked at the nitri report also is talking about in the energy space bofuel is supposedly to 54:21 54 minutes, 21 seconds play a very large role. So we will see many opportunities coming up in in the space of bion energy and we will also 54:28 54 minutes, 28 seconds encounter many inquiries in our way. Now we will have to decide what makes sense from cash shareholders point of view and the commercial sense whether we should 54:37 54 minutes, 37 seconds go for specific order or not. So there will be some kind of a what I can say commercial angle to it also. uh not 54:44 54 minutes, 44 seconds necessarily the one which you referred is having that but going forward you might come up come across multiple inquiries multipleus multiple so-called 54:52 54 minutes, 52 seconds orders not necessarily pra will be addressing to all of them we will address only those where it makes sense 54:59 54 minutes, 59 seconds commercially for project p shareholders understood since a little question this one in the 55:08 55 minutes, 8 seconds same document somehow doesn't find as much mention of an EBP program and correct me if I'm wrong when I'm saying what I'm saying. 55:16 55 minutes, 16 seconds Does that make you less hopeful of uh EBP targets being increased from here on and maybe more focus happening on other aspects like SAP and CBG? 55:25 55 minutes, 25 seconds No, frankly speaking uh it is not I mean it is not giving us a some kind of a negative picture rather it is talking 55:32 55 minutes, 32 seconds about expanding the entire basket and it is not only restricting to EBP per se. 55:37 55 minutes, 37 seconds So it is talking about something more than that. I think that is far more encouraging instead of only uh hinging 55:45 55 minutes, 45 seconds our hopes and everything to only ethanol blending. 55:49 55 minutes, 49 seconds So it is talking about it is how it is talking about CBG. It is also giving some kind of a sense of how this legisl 55:58 55 minutes, 58 seconds can happen how the additional blending can happen. No timelines are given that is fine but at least the road 56:06 56 minutes, 6 seconds map is very clear that this is how they would like to march on this bofail space. 56:12 56 minutes, 12 seconds Maybe a last question as in uh I recall that u the tariff issues had limited the 56:19 56 minutes, 19 seconds customer interest in the etc or the genx fidelity. When you say 12 audits and four framework of agreements is there any revival that you are seeing from 56:27 56 minutes, 27 seconds US-based customers for the genx fidelity posted changes that have happened. Yes, the first order which we are talking 56:36 56 minutes, 36 seconds about is from US and a pipeline from US is also very strong. So we we we 56:43 56 minutes, 43 seconds definitely expect and hope that order revival should start happening from US side in any case. 56:52 56 minutes, 52 seconds U maybe if you could just mention how many such orders should we be having for us to be having a shot at break even. 57:01 57 minutes, 1 second Oh my. Oh, break even point. If you are asking for uh gen the term should be somewhere around, of course, it completely depends on the nature and the 57:10 57 minutes, 10 seconds margins. Uh but ballpark number you can consider somewhere between 400 500 crores. Okay, thank you so much for the respons. 57:19 57 minutes, 19 seconds This was my question sir. 57:21 57 minutes, 21 seconds Thank you. Thank you. The next question is from the line of bin chain an individual investor. Please go ahead. 57:29 57 minutes, 29 seconds Yeah, thanks for the apostrophe sir. Uh I have just heard about one news item which said emitics India. So they have 57:38 57 minutes, 38 seconds started biodiesel deliveries to uh oil marketing companies. Uh this appeared on 57:44 57 minutes, 44 seconds 3rd February 26. So I wanted to understand how uh their biodeiesel deliveries are different from what we 57:53 57 minutes, 53 seconds are working with is all. So please explain that. Okay. So, Dime um 58:00 58 minutes biodiesel uh is a different product compared to what we talked about uh with 58:06 58 minutes, 6 seconds the reference of uh bio IBA. Biodiesel is a product that is made from the 58:13 58 minutes, 13 seconds biosources which is similar to the diesel right and there is already a market there and people are working in 58:22 58 minutes, 22 seconds those technologies. PRA is not there in the biodeiesel market. Uh what can happen is our customers uh who are our 58:31 58 minutes, 31 seconds ethanol customers uh especially the grain or the corn ethanol customers they make what is called as distillers corn 58:38 58 minutes, 38 seconds oil and one of the feed stock that goes into the biodeiesel can be from uh this 58:46 58 minutes, 46 seconds distiller corn oil. So that is the only connection Raj will have as far as biodeiesel is concerned. What we are 58:53 58 minutes, 53 seconds talking about is something similar to EBP20 program. That means you can get a bofuel like bioba 59:02 59 minutes, 2 seconds and blend it into the conventional diesel. Right? So like how in a conventional petrol we can blend a 59:11 59 minutes, 11 seconds ethanol bioeththanol. Similarly, a bioisobutinol can be blended into the conventional diesel and that is a 59:19 59 minutes, 19 seconds totally different way of introducing bofuels into the conventional energy mix. So just wanted to give you a 59:28 59 minutes, 28 seconds difference between the two. Am I am I talking? 59:33 59 minutes, 33 seconds Yeah. Yeah. Thanks. Thanks for the clarification. Thank you. Thank you. 59:38 59 minutes, 38 seconds Thank you ladies and gentlemen. I now hand the conference over to the management for closing comments. 59:46 59 minutes, 46 seconds Yeah. So, thank you everyone for your time today. In case you have any more questions, feel free to write us at info@pach.net. 59:55 59 minutes, 55 seconds Thanks again for your time and we look forward to you on next an analyst call. Thank you. Have a good day. Thank you. 1:00:03 1 hour, 3 seconds Thank you on behalf of PR Industries Limited. That concludes this conference. 1:00:07 1 hour, 7 seconds Thank you for joining us and you may now disconnect your lines.